The Secretary General of the United Nations (UN), António Guterres, reiterated this Wednesday his calls for reforms in the global financial architecture, highlighting that one in three countries in the world is at high risk of a fiscal crisis.
Opening the High-Level Dialogue on Development Finance, Guterres argued that of all the issues to be discussed at the 78th UN General Assembly (UNGA 78), “finance is perhaps the most crucial” as it is the “fuel that drives progress on the 2030 Agenda and the Paris Agreement.
“Today, that fuel is running out – and the engine of sustainable development is slowing, stagnating and failing,” he said.
At a time when there are only seven years left until 2030 – the deadline for the Sustainable Development Goals (SDGs) – Guterres said progress on the UN’s most fundamental priorities – poverty and hunger – “has been reversed for the first time in decades.” It is regrettable that climate finance and development aid commitments are not being met.
“There is a sharp and growing divide between countries that can access financing on reasonable terms and those that cannot and are falling further behind. The SDG financing gap has become a chasm, estimated at $3.9 billion per year (€3.65 billion). annually),” he indicated.
Furthermore, developing countries face borrowing costs that are up to eight times higher than those of developed countries, in what is considered a “debt trap.”
“More than 40% of people living in extreme poverty live in countries with serious debt problems,” he pointed out.
Despite acknowledging “some good faith efforts” to help developing economies survive this financial crisis, the former Portuguese Prime Minister noted that “they are not enough.”
“It is clear that the systemic problems of financing sustainable development require a systemic solution: reforms in the global financial architecture. (…) I repeat my call for a new Bretton Woods moment, in which countries come together to agree on a global financial architecture that reflects current economic realities and power relations,” he argued.
But while these structural reforms are essential, they will take time “and time is short,” Guterres said, predicting that the 2030 Agenda may remain out of reach.
In this sense, he called on governments to propose concrete measures to be adopted by international leaders to save the SDGs.
“I urge you to use this high-level dialogue as a platform for constructive engagement, with a focus on creative and practical financing solutions that can be further developed in the coming months and years,” he said, addressing addressed the leaders in the room.
“Together we must turn this moment of crisis into a moment of opportunity, find joint financing solutions to rebuild global solidarity and create new momentum for sustainable development and climate action,” he concluded.
This event, taking place at UN Headquarters and organized shortly after the SDG Summit, aims to provide political leadership and mobilize resources for the SDGs, and to identify progress and emerging challenges.
Source: DN
